Lasaco Assurance Gets Approval for N36bn Capital Raise

Lasaco Assurance Plc has obtained shareholders’ approval to raise its share capital to about N36 billion, positioning the insurer to comfortably exceed regulatory thresholds ahead of the insurance industry’s recapitalisation deadline scheduled for July 2026.

The approval was granted at an Extraordinary General Meeting of the company held in Lagos, where shareholders endorsed a comprehensive capital-raising plan designed to strengthen Lasaco’s financial base and preserve its status as a composite insurance provider under the new regulatory framework.

The recapitalisation exercise follows the Nigerian Insurance Industry Reform Act 2025, which introduced higher minimum capital requirements for operators across the sector. Under the new rules, life insurance firms are required to maintain a minimum capital base of N10 billion, general insurance companies N15 billion, while composite insurers must meet at least N25 billion. Lasaco’s proposed N36 billion capital level places it well above the composite benchmark.

Addressing shareholders at the meeting, the company’s chairman, Mrs Teju Philips, said the decision to recapitalise early was driven by the need to ensure long-term stability, improve underwriting capacity and enhance competitiveness in an increasingly capital-intensive insurance market. She noted that capital strength remains a critical factor in determining how much risk insurers can absorb and the scale of business they can undertake.

According to resolutions approved at the meeting, Lasaco’s issued share capital will increase from about N11.08 billion to approximately N36.08 billion through a combination of a rights issue and a private placement. Existing shareholders will have the opportunity to increase their holdings through the rights issue, while the private placement is expected to attract new institutional or strategic investors.

Shareholders also agreed that all new shares issued under the exercise will rank equally with existing ordinary shares, ensuring uniform rights across the shareholder base. In addition, amendments to the company’s Memorandum and Articles of Association were approved to reflect the new capital structure.

Mrs Philips reassured investors of Lasaco’s operational strength, pointing to the company’s record of meeting claims obligations and maintaining transparency in its dealings. She said the higher capital base would enable the insurer to take on larger risks, expand its product offerings and better serve customers across its life and non-life insurance portfolios.

The meeting further authorised the company’s board of directors to determine the detailed terms, pricing and timing of the capital raise, subject to approvals from relevant regulators, including the National Insurance Commission and the Securities and Exchange Commission. Directors were also empowered to appoint professional advisers and conclude all agreements required to complete the exercise, while the company secretary was mandated to handle statutory filings with the Corporate Affairs Commission.

Industry analysts say Lasaco’s move reflects a broader trend among insurers seeking to strengthen their balance sheets ahead of the recapitalisation deadline, as regulators push for a more resilient and solvent insurance sector capable of supporting economic growth.

With shareholder approval now secured, attention is expected to shift to the execution of the capital-raising plan and its potential impact on Lasaco’s market position as the recapitalisation programme gathers momentum across the industry.